DIGG HUGE NEWS at close Friday!
Digital Gas to Form Oil Shale and Energy Savings Consortiums after Receiving Notice of Offers to Finance and Partner
Dec 16, 2005 3:23:00 PM
Copyright Business Wire 2005
NEW YORK--(BUSINESS WIRE)--Dec. 16, 2005--
Digital Gas, Inc. (OTC Pink SheetsIGG) announced today that it will form two energy related consortiums to commercialize patented technology and create oil shale and energy savings businesses.
This was in response to an offer of an asset backed loan from a private trust and strong interest being received to partner on Digital Gas projects from major Fortune 500 companies.
Collateral to facilitate a loan package, which Digital Gas has been informed will be for a minimum of $300 million, has a certified appraisal value of $577 Million, as well as having a financial Safe Keeping Receipt (SKR) with full financial responsibility from Grupo Cometra, a division of Grupo Seguridad Integral of Mexico. Grupo Seguridad is the leading security firm in Mexico now in their 26th year.
The owners of the collateral are seeking to enhance their return on properties already producing significant steady income. The properties include residential, commercial, farming and vacant land that Digital Gas may have the opportunity to develop as part of this arrangement. This funding opportunity is in addition to the previously announced asset backed funding for $30 million of which $5 million is anticipated to close this month or early next month.
As a result, Digital Gas expects to fund all of its businesses within the next thirty to forty-five days of the submission of loan documents, anticipated to be filed next week. Those businesses to be funded are the following: waste-to-energy, fuel cell products and technologies, mass storage products and technologies, bio-fuel and farming operations, oil shale, tar sands and coal bed methane extraction, tire processing, nanotechnology and environmental remediation.
In addition to the asset backed funding, Digital Gas will now seek to fund each of the consortiums with an initial $1 Billion in equity for development, commercialization and further acquisitions.
With these investments in place, the Consortiums will seek to raise the balance of $5 billion thought needed for the full expansion of commercial activities through debt or convertible instruments.
Source: Digital Gas, Inc.
---------------------------------------------- Digital Gas Inc.Brian Smith 732-927-4073energei@optonline.net
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